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Q. The differences between Book Keeping and Accounting

  The differences between Book Keeping and Accounting S.N. Book Keeping Accounting 1. It only covers the recording of accounting procedures. It covers the accounting procedures. 2. Before doing accounting procedures, book keeping should be recorded. Accounting begins after the accounting records are completed. 3. Its main objective is to keep scientific records of financial transactions . Its main objective is to show the results and efficiency of financial transactions. 4. Book Keeping is recorded through co-accountant. Accounting records are kept by the chief accountant. 5. It does not require any special skills. This requires a special type of ability. 6. No special knowledge is required for book keeping.   It requires a special type of knowledge.
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Process of Accounting/Accounting Cycle

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Process of Accounting/ Accounting Cycle The accounting process or accounting cycle is a process that begins with the recording of financial transactions and based on that, financial statements are prepared. 1. Identification of financial transactions: The accounting process begins with the identification of financial transactions. Only financial transactions are recorded in accounting records. All business transactions that can be converted into cash are called financial transactions. 2. Recording of financial transactions in journals and subsidiary books: After identifying financial transactions, the transactions are recorded in a journal or subsidiary book in order. 3. Classification of transactions recorded in ledger accounts: In the third stage of the accounting cycle, all the transactions recorded in the journals and subsidiary books are separated into their similar nature and recorded in the ledger. This is called the classification of financial transactions. 4. Summary of rec...
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Functions of Accounting

Accounting functions play a key role in managing, analyzing, and communicating the financial information of any business organization. 1. Identification and recording of financial transactions : Identification and recording of financial transactions is the basic function of accounting. It is not possible for any organization to remember the transactions that have taken place throughout the year, so it is necessary to identify and record financial transactions. 2. Classification and summary : If the recorded transactions are in order, then the users can use them meaningfully. Classification and summary make it easy to establish the profitability of the business, evaluate the financial position of the business and keep records. Classification and summary make it easy to check the mathematical accuracy. 3. Analysis, interpretation and communication of information : To explain the actual situation of the financial statements prepared in the transactions of the business. This makes it ea...
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